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Trading Places: Is Hyundai the New Honda?

Growing up in Southern California in the 1980s, I used to ride along with my parents, staring out the car window and trying to spot the coolest automobiles the world had to offer. All the best wheels came to SoCal, from Ferrari 328s and Porsche Turbos to Lotus Esprits and BMW M1s. The cars that really grabbed me, though, were the ones I believed I could purchase by the time I had a license: the Toyota Corolla GTS, Volkswagen GTI, and Honda CRX and Prelude.I wanted Hondas the most, because, as I read in such magazines as Motor Trend, they offered the best blend of technology, reliability, and affordability. The CRX Si won MT's 1988 Import Car of the Year with its mix of 16-valve aluminum engine, four-wheel independent suspension, and $10,195 price tag. "The most exhilarating ride you'll find this side of a formula racer," MT wrote. The '88 ICOY runner-up, the Prelude Si 4WS, the first production car to offer four-wheel steering, was another Honda I coveted. Honda was a pioneer, and every car enthusiast knew it.Every car enthusiast also knew that Hyundai, which released its first U.S.-market car, the Excel, for 1988, was the opposite of a pioneer -- a follower. The perception of many was that Hyundai was a Honda copycat: "Hyundai" looked and sounded somewhat similar to "Honda," and it, too, used an H badge. Hondas were high-quality and fun to drive, and Hyundais were, um, not.In the 1990s and into the 2000s, Honda remained a forerunner. It introduced titanium connecting rods and VTEC variable valve timing in the Acura NSX. The Integra Type-R, the poor man's NSX, offered a handbuilt I-4 with 108 hp per liter, unheard of for the day. And the Legend was the first near-luxury car to alert Europe that Japan was serious about upscale autos. As H-badged Hondas, Civics, Accords, and Preludes got VTEC, the Insight introduced Americans to the hybrid, and the S2000 afforded speed junkies the feeling of a MotoGP bike in a car.Since then, Hyundai, somewhat under the radar, has steadily improved the quality of its growing lineup, building cars that are as reliable and often rewarding as they are affordable. Over the last few years, specifically, while Honda has lifted off the trailblazing throttle, Hyundai has put its pioneering foot to the floor. For instance, Honda currently tops out at a six-speed automatic. Hyundai? Eight. Honda offers not one car with a direct-injected engine. Hyundai? Seven (and counting). The most luxurious Honda, the Acura RL, pales next to the amenities and power of Hyundai's Genesis and Equus. Hyundai satisfies rear-drive sports-car fiends with the Genesis Coupe. Honda? Not so much. Honda's tiny CR-Z Hybrid (34 mpg combined) barely surpasses the fuel economy of the comparably sized Veloster (32), which is devoid of any hybrid wizardry. What the Veloster isn't devoid of, however, is a dual-clutch transmission, that sporty tech piece adopted by Audi, BMW, Ferrari, and Porsche. And now Hyundai. But not Honda.Hyundai still has a ways to go, especially in terms of chassis dynamics, but the perception and reality of the brand have changed. When looking to the future, I wouldn't be surprised to see an H badge leading the way -- just not the one I adored as a kid.Illustration: Doug Fraser

I own a '13 Elantra GT. Bought it new in June of that year. It now has 50K miles and no problems at all. This is my first Hyundai and Im very satisfied with my car. No regrets at all! I agree that Hyundai has come a long way since 1988 when I looked at their first imports. They were pretty sad cars. The Koreans have done their home work and are taking a well deserved seat at the table of fine car mfgrs. All you Hyundai bashers are just being ridiculous.

Formula 1:
Honda 6 World Driver's Championships
Honda 5 Constructor's Championships
Hyundai maybe one day will join ala Toyota and maybe will win (not) ala Toyota
Indy/Cart
Honda: 10+ Constructor's and Driver's Championship
Indianapolis 500: More than a few (some versus competition from Mercedes, Ford or Toyota some as a sole supplier)
Hyundai ....maybe one day will give it a shot
SCCA Championships
Acura Integra more than a few
Honda Accord more than a few
Civic SI more than a few
Acura TSX more than a few
Hyundai:
1.
I do not care if the Hyundai has 8 speeds and triple direct injection :) if the old Honda with a carburetor :) and a 4 speed :) transmission is more efficient I shall stick with the Honda ....
The old Accord was more than a match (in real life driving) to the new Sonata.
Now with the new DI engine I will bet my two pennies that the Accord will have Sonata's number both on speed/handling and efficiency...

For someone who desperately defends Hyndai, you really know nothing about the company. This makes me wonder how much you know about your car. Ken is right, the two are own by the same group and in fact share many chasis and platform. In fact, all its engines are the same. How can Kia be a bit behind. You've just kicked yourself in the foot by saying people shouldn't be so brand conscious.
My recommandation stick to companies that makes great cars; cars you can be proud of after owning for many years to come.

Wow, derek is getting aggressive with his comments. Whatever happend to that nice guys!!!
I agree that Hyundai was successful in being able to pull buyers from other brand and also lots of younger buyers. However, building a brand loyalty isn't something that is "laughable." Without it American auto industry would have declared bankrupcy 10 years ago.

Sadly to say, the only thing going for Veloster is its polarizing styling which I think it is great because I am a sucker for hatchbacks. But come on, beam rear axle base on cheap economic does not make it a sports car. Almost all its competitors are better drivers. If car represents one's personality, Veloster is "all show and no substance." Lets just hope the chicks dig the style."

Sporty?!!! Kia???
The only thing sporty about Kia is in its style in which they stole Audi designer whichwas a smart move. However, car enthusiats can't be fooled. In addition, I believe Kia over inflated their hp numbers for please those spec loving buyers. Come'on, how can a 260+hp Kia TDI goes from 0 - 60 mph in more than 7 sec.
All the sportiness you are feeling is all superficial from clever marketing and inflated spec sheets. Also, I am not saying Hyundai is sporty but it does have Volester and Genisis coupe on its lineup so it can let the sedan be sedans.

Hahaha!!!.....Not Funny!!
I usually don't like to post response but this topic just grabbed my attention for being too far stretched. Yes, Hyundai burst into the sales chart similar to what Honda did thirty something year ago. Yes, specs indicate that both company produced well engineered cars that are fuel efficient and present great value. But that is where all the similiarities ends.
Once one get behind the wheel that is where Honda really differentiates itself from Hyundai's numb driving experience. Honda builds its cars with years of racing experience with simple design that yield great driving pleasure. People I know who own Honda's loves Honda and many continue to be loyal taking their cars well pass 200k. People I know who own Hyundai's are more drawn by value and specs but many can't wait to get out before its warranty expires. (this would explain why Hyundai can offer 100k warranties in the past because no often you find one willing to own one past that).
However, I believe Honda has hit a bottleneck in that it became too conservative and abandon it's racing heritage by not having a halo car. Hyudai on the other hand, it heading to the right direction (even though the only Hyudai I drive would be the 3.8 genesis coupe), with its innovative design and willingness to please the market and try new things.
Honda... please wake up, its time for the older gerenations to retire and screw those share holders who don't know about cars run the company that once represent the sporty brand that dominated the US market.

Honda is the Joke bud, you Honda fanbabies make me laugh, if it wasn't for the F&F movie nobody would care about the pos Civic, Honda slacked off/dropped the ball/rested on their laurels what have you and now they are paying the price,

I know lots of people who drive Hyndai's and those cars usually never make it past the 200k mark. I mean you barely see 10 year old Hyndai's on the road anymore cuz they're all dead. Until, i see the proven 200k+ mileage in 50% of their cars, 15+ years in existence.... i'll stick with Honda. I give them credit for being the better body designers at this moment in time over Honda and Toyota.

Honda has definitely played it safe & Toyota'fied itself over the years but still is not as boring & stale as Toyota. Hyundai - is still no Honda - they have YEARS to go to prove that they make quality reliable cars. You cannot change your image overnight.

Hyundai isn't the "new" Honda. Hyundai may be targeting Toyota, but they aren't copying the Japanese. What is certain is that Hyundai is firing on all cylinders and continues to make huge strides in advancing their vehicles.
Hyundai offers a better value than Honda even without the longer warranty. Hyundai's engine and transmission technology are better. Hyundai's reliability is superior to both Honda and Toyota in my experience. Hyundai provides rear wheel drive performance vehicles in a way that Honda does not.
Hyundai's V8 made the Ward's best 10 engines for two years running. Was Honda even represented in the list? Hyundai is about to introduce direct injection across their entire engine line. And Honda's answer to that? The CVCC head was very advanced in its time as was VTEC, but aren't cutting edge any longer. Hyundai has an 8 speed auto. Where is Honda's? Hyundai is also preparing to release a 10 speed. Hyundai gives us a 6 speed auto in their entry level car and an automated dual clutch in the inexpensive Veloster for crying out loud. Honda may be winning Formula1 races, but are giving us dated technology for their daily drivers.
I will concede that Hyundai's suspensions and driving dynamics do not yet match Honda's. But it's just a matter of time before Hyundai won't just match them, but exceed them.
Honda now has a far greater problem on their hands. They now have to compete with Hyundai with a fraction of the profit Hyundai makes. Hyundai invests a considerable of their profits back into R&D. Perhaps Honda can borrow the money from the gov't of Japan to fund new R&D, but they had better hurry. Hyundai is showing absolutely no signs of slowing down. 2012 brings brand new designs to the Azera, Santa Fe, Genesis Coupe and the introduction of the turbo 1.6 GDi engine to the Veloster. Hyundai brings new redesigns to the market at a breakneck pace along with their corporate sibling, Kia who also has plans to introduce a sporty rear drive vehicle also to the market. The biggest question is with the Genesis coupe. It's fairly certain the 4 cylinder turbo will approach the 300 HP mark. So do they pull the plug and put their amazing 5 liter V8 into the car or simply turbocharge the GDi 6 cylinder engine? Either way, Honda has nothing that competes against this vehicle, much less the upcoming turbo Veloster. It's even rumored that the next generation Genesis sedan will get AWD. Imagine that one, an 8 or 10 speed automatic mated to their V8 driving an AWD platform. And what is Honda going to give us? Even the Scion FR-S and Subaru BRZ are going to be outclassed by the Genesis coupe. In a straight line, those cars may also get embarrassed by the turbo Veloster. The CR-Z and Civic Si aren't even competitive. Neither are any of the Acura models.
Finally, it doesn't really matter if the new designs don't age well. Hyundai will redesign them again in 2 more years. With as good as their cars are, they will still hold their resale values well. I'm seeing used Rios and Accents with dated designs hold outstanding resale value in this market.
It's unfair to both companies to say the Hyundai is the new Honda. They are very different companies. Hyundai's huge advantage is their engineering and industrial technology. They are superior to any of the Japanese auto manufacturers. They have used it to their advantage to achieve their stunning success. As they continue to develop and leverage their industrial model, they will continue to pull away from both Honda and Toyota. Just as LG and Samsung make better and more compelling products than Sony, JVC, and Panasonic, Hyundai and Kia are doing the same. To watch these companies rise up from ashes and become world class competitors is really something.
For those who love Hondas, it's okay. Honda makes a nice product. The products aren't particularly stylish, nor are they the pinnacle of performance or reliability any longer. That said, one could do much worse than to buy a Honda or a Toyota. However, I find that Hyundai provides the best overall value for my hard earned dollars. As long as they continue to strive to improve their products, I will keep buying them. Honda does offer better suspensions and driving dynamics for now. But it won't last long. The engineers at Hyundai will see to it and are busy rectifying that matter even now. Hyundai has focused thus far on engine technology, transmission technology, safety, weight reduction and reliability. Suspension technology and driving dynamics weren't high priority, but they will be now. They take criticisms to heart and doggedly focus their energy on the problem until they are the best. Toyota had better watch out in the hybrid arena and Honda in the driving performance one. They will both get outflanked by Hyundai once again if they don't start to get serious. Design refreshes aren't going to cut it anymore. They had better focus on improving their products or Hyundai is going to all out rout them in every category.

right. i work for hyundai. do you want to know what is sitting in my garage right now? a 2000 nissan maxima, a 2004 ford ranger, and a 2012 hyundai veloster. they have all been pretty good cars for me. i DO NOT care what name is on the front of my cars.

now you are complaining that honda/toyota/hyundai arent BMW or Benz??
no kidding. do either one of those companies make something that i can buy for $18k that has all the amenities i want and will be reliable for the foreseeable future without needing to put money into it?
ive seen the young folks tooling around in their 15 yr old bmw's and benz's. thats fine if thats what someone wants, but they are putting alot more money into those cars to keep them on the road.

babbling in the face in evidence. hilarious. i am nothing but a customer who saw the light. someone who refused to just buy the next product because it had the toyota or honda logo on the front.
at least i give credit for honda and toyota still making good, reliable cars. i just accept the fact that other companies have caught up with them. honda and toyota dominated for a long time because hyundai, along with the domestics werent churning out anything of quality. toyota and honda didnt get any worse..they just have competition now. man, you honda boys are so sensitive. facts be damned, you will probably just buy honda's forever.

Hyundai sucks. No reliability. No quality. No resale value.
They are a pile of garbage sprayed with febreeze. Anyone who buys them will know after they drive it for >5 years.
Honda exterior design might be stale, but it's engine/transmission will never fail you.
If you want a better car. Buy a BMW or Benz. But dont be foolish and buy a Hyundai. Bottom line is that Hyundai covers up shitty internals with flashy design.

Yep... Hyundai sucks!
You could dress it up any which way you want.
It will not change the fact that Hyundai sucks.
No heritage. No Passion. Just out for a share of the auto market.
Don't be upset, Honda also sucks, the best they ever made was the S2000 and even then it's not worth the $40K they were asking.
Toyota/Lexus are plain boring.
If you want inexpensive and cheaply made car. Go for it, get your Korean or Japanese junkers that only serve as rubbish road obstacles.
I don't care for the Equus either, anyone willing to pay $60K for a Hyundai should have used that money for an MRI and get their head examined.
Really?? A Hyundai??

ive seen that proposed elsewhere. its probably closer as far as the goals of the two of them. worldwide, hyundai is huge. while hyundais reliability has skyrocketed in the past 10 years, Kia is still a bit behind there, but still massively improved.

i dont see that as being necessary (having one car that gives the manuafacturer its image).. if there is some legacy to point to in the future, it may be the time period 2010-2011, when they rolled out the new sonata, elantra, accent and veloster.
i mean, who walks around saying, "hey baby check out my new 2012 honda civic?'
heck, i dont even need to say that about my veloster because wherever i park it people are checking it out (im not kidding).

yes, thats just spin control from honda. there were close to 1,000 cr-z's in stock during october. they sold less than 300.
certainly enough inventory to have done better. even niche cars like the fiat 500 are doing much better sales wise.
the inventory may be limited to some degree, but even honda fans arent too happy with honda bringing that car to market.

I really hope you're not using that KBB corporate loyalty report as evidence of Hyundai's high coporate loyalty. That study doesn't tell you squat except what people are surfing on KBB's site, and in what order. In no way can you correlate any real world purchase data to the results of that "study". There is no actual evidence that Hyundai's corporate loyalty is any different than anyone else's at this point.

What is Hyundai trying to do with the brand itself?
Each of the great makes listed in the article had a vehicle, that helped give them an image for the brand.
Nobody walks around saying "Hey baby, check out my brand spanking new Hyundai Accident"
Perhaps the writer should revisit the question in a few years time, it may be just a tad bit early to ask the question right now once the entire line-up of Hyundai's has had time to be fleshed out.

sorry to hear that. unfortunately, this can happen to any make, even toyotas and hondas (believe me, i know, because that is all i ever drove). bad or good experiences over the entire buying population will ultimately affect how loyal customers are to a brand. toyota and honda have always had high customer loyalty for good reason.hyundai currently sits atop in corporate loyalty, so luckily most customers have not had your experience.

There's no reasoning with that fool. He's a die hard Honda fan. I'm with you as far as not having any loyalties to one brand. It's just mind boggling how Hyundai/Kia has achieved so much success in the quality and style of their vehicles. Some people will always be skeptical and not keep an open mind, but that's their loss. Championships and trophies don't mean squat if that does not trickle down to innovations made at the bottom. Let's face it, Honda is just sitting there gloating and being complacent.

that's Honda speak for "we f**ked up" on our "NEW" models, like the Civic. Let's fool people and tell them that our inventory is limited, so we can have panicky Honda fans buying them up. That's a crock of BS!!! Do yourself a favor and go to Hyundai/Kia, where they won't be pulling you a fast one. High quality, outstanding warranty, and reasonable prices reign here, not at Honda anymore.

I got caught up in the Hyundai hype and decided to make the plunge...my bad. My Elantra Limited is six months old and has been in the shop 4 times, twice requiring a loaner car. I regret every leasing this car and count the days when I can dump it off at the Hyundai dealership. Thankfully it's covered under warranty and roadside assistance for the entire lease. I hope Honda's design turns around soon, my lease is up in 2.5 years.

i think you have a well balance sentiment. however, i do think hyundai did what they wanted and needed to do with the veloster while still keeping the price point down.. it is a fun car to drive because 1) it handles good (not great) with little body roll and 2) the manual transmission is set up nicely with short throws and good precision. .keeping in mind it is an economy based car, not a sports car, i think there are as few shortcoming as one could hope for while spending $18k and getting 40 mpg's (which btw i do get)

All this talk but the key issue is neglected. What was Honda? Honda was a company that put out cars that were economical, efficient, and reliable, but also embodied technical precision and a fun to drive spirit that permeated the lineup. Their technical solutions to difficult problems were often amazingly simple yet beautifully effective (CVCC for emissions, VTEC for variable valve lift/duration). Honda cars weren't the fastest, didn't pull the best objective handling/breaking numbers, etc. but they were, light, durable and exceptionally well integrated and offered a basic platform that had massive potential (both chassis and engine)
This is what Honda was, and I believe that this is what they have abandoned. They have gone away from double-wishbone suspensions, they are decontenting their engines in terms of VTEC applications, the cars are growing in size, the chassis have been dumbed down, steering has become overlight and dead, etc. Honda was the middle class BMW. Unfortunately, they've gone away from that (and BMW seems to be losing the plot too).
But has Hyundai taken over the role of what Honda was? Absolutely not. Hyundai cars do not have any chassis verve. They don't beg to be thrown into a corner and danced with (see the disappointing chassis of the Veloster) like the Hondas of old. Their engines are slow revving and tend to underperform the quoted specifications. Instead of simplicity in engineering and styling, Hyundai has gone on a complex curve kick which ages quickly. This is not to say that Hyundai hasn't advanced in leaps and bounds. Nor does it indicate that Hyundai isn't making cars that are attractive to the average consumer - more so than Honda. But that's as much due to the downfall of Honda as the rise of Hyundai. And when you get down to the nuts and bolts Hyundais are not cars that are being bought because they're a joy to drive. It's because they're cost effective, offer class leading specs, have innovative (if not timeless) styling and they are exceptionally well advertised, marketed and sold.
Could Hyundai _become_ the next Honda? Sure. But they need to spend a lot of time on chassis integration, driver/machine interface and improve the real world feel/performance of their motors now that they have the spec sheet nailed. Until then, Honda's place is vacant. Mazda has taken on some of the mantle, Hyundai another part, but no one has become the new Honda yet.

Let's just focus on Honda itself and hope everyone answers the following questions honestly:
1) Do u realize Honda is getting more and more criticisms from the public, the journalists, and even Honda loyalists these years?
2) Do u realize Honda's sales has dropped so much or their lead has diminished significantly worldwide?
3) Do u know do Honda has decided to refresh/redesign the new Civic earlier bc of all the criticisms?
4) Do you feel disappointed on Honda's current lineup, design, and quality?
5) Do you find the older models of Honda are more attractive and better in almost every way?
6) Do you feel Honda has lost the ground to some automakers the past few years?
Honda and Hyundai both have strengths and weaknesses. Honda was the forerunner and Hyundai is the rising star. If other automakers like Hyundai are making huge leaps every year while Honda is making a tinny step forward, eventually Honda will fall behind.
Hyundai will be ahead of Honda in a few years if Honda doesn't act fast enough.
For those who only rely on Honda's glorious racing history in the past but ignore the current developments of other automakers, you are in total denial.
I think Honda still makes good and reliable cars, but being "good" is not good enough to keep up with other automakers. I hate to say that but even the mother nature is not helping Honda.
BTW, I don't work for Hyundai and I'm just one happy Hyundai owner. These are my honest opinion but I do wish I have Hyundai's share since Hyundai is making huge money these days!

Honda has nothing exciting or pretty (Accord Coupe is the only acceptable car). Honda should get their head out of the hole! I drive past a Honda daily and never do I want to look their way.. Hyundai On the sonata - replace the turbo charged 4 cyl with a more refined 6cyl like the Camry, tweak the suspension, and don't change the recipe! Many standard features, great styling, for less $$$ than the competition.. The Hyundai Genesis Sedan is skyrocketing in price! Overall. Hyundai is grabbing everyone's attention.

please tell me where i can get that sonata. i will call tomorrow and buy it. just the name of the dealer and the town will suffice. even private party value on that car (not even the top trim) is over $14k..retail would be even higher. i will go buy the car and resell it

why do the kids always accuse someone of working for a company just because they support them? its a tired argument. are you that desperate to make things up. i am just able to be objective. all ive owned are toyota and honda's, so obviously i think they build good reliable cars. ive just accepted that someone else is making cars just as good. i would add Ford to that list as well.
oh no, if my employer sees that i will be fired by hyundais pr department.